Money, Data, and Democracy

The U.S. presidential election is thirteen months away. At this point, more than fiftycandidates are vying for nomination by the two major parties. The field includes the lone member of the United States Senate to stand as a Socialist and a New York City businessman who has four corporate bankruptcy filings to his name. Members of the voting public may be said to fall into two camps at this point — political junkies who simply cannot ever get enough of campaign politics and the majority of Americans who plan to tune in about a year from now. The former group is hell-bent on getting enough attention from the latter to raise the country's dismal voting percentage to its presidential-election average, which hovers around 60 percent (ten points lower than the average for OECD countries).

Voter turnout is a big deal. Not just to political junkies and clipboard-wielding party volunteers but also to American foundations. According to Foundation Center's newest mapping tool, Foundation Funding for U.S. Democracy, 180 foundations have spent more than $150 million on voter education, registration, and turnout since 2011, a period that includes one presidential and one midterm election.

Seems like a lot of money to get Americans to do what people in many other countries die for. But we're good at spending a lot of money on our democracy. Even this early in the campaign, big donors are talking big numbers, promising (threatening?) to spend $100 million or more each on their favorite candidates or issues. And political junkies are predicting that more than $4.4 billion will be spent on TV ads alone — while election spending in total could run as high as $10 billion. Suddenly, nearly $150 million of foundation funding over four years doesn't look so big in comparison to $10 billion for a single election cycle.

The huge sums of money have become as much a part of the quadrennial American narrative as the quirky unknown candidates, their inevitable stumbles and blunders, and the occasional important policy discussion. Part of the interest lies in the sheer magnitude of the sums involved. Imagine what we might accomplish in social services, education, or health care if we spent an additional $10 billion.

But some of the interest also is driven by persistent efforts to make campaign spending more transparent. Because presidential elections only happen every four years, there's a better-than-average chance that each one will be "the most expensive ever." Telling that story, tracking the numbers, and highlighting the huge sums provided by a (tiny) subset of political donors has become part of our republic's ritual.

Organizations such as the Sunlight Foundation, MapLight, and the National Institute on Money in State Politics find, clean, and load (in useful formats) the fundraising and spending reports that candidates, campaigns, and various aligned political organizations are required to file. The costs of doing this are more than you might at first imagine, as we tend to think that simply posting data sets is all that's necessary to make that data useful. As proponents of transparency and those trying to obfuscate know, raw data by itself as a first step is not sufficient for sense-making. Open and accessible is a requisite first step, but cleaning, verifying, analyzing, and using it are still very much required. Even so, various political agendas have stymied efforts to require e-filing of these reports as a first step, a regulatory change that would go a long way to lowering the cost of making sense of political fundraising.

In the looking-glass world in which we find ourselves, the more raw data on political fundraising and spending that becomes available, the more we need nonprofit intermediaries, including investigative reporting organizations, to help make sense of the data. For all its potential to make information available at ever-lower cost, opening up data requires complementary investments in mechanisms to make the data useful and help us make sense of it.

If the issues swirling around campaign finance reform sound familiar to those of you who work in nonprofits, they should. The same set of questions about e-filing and data disclosure also applies to nonprofit tax filings. Earlier this year, the IRS lost a legal challenge aimed at accelerating its heretofore-glacial efforts to put nonprofit tax data online. Any year now we should see mandatory nonprofit e-filing and the release of tax data in a machine-readable format.

If the nonprofit space follows in the footsteps of our political system, the end result of a law to require nonprofits to e-file won't be a straight line to cheaper and more convenient access to that information. We'll also need more investments in the intermediaries and infrastructure that can help us make sense of the increasing quantities of data we generate.

We're reaching the stage where ready access to data on spending in politics, on politics, and from foundations and nonprofits can be assumed. This bodes well as a catalyst for greater understanding, more insights, and, potentially, more participation. Not because the data will make the responsibility of being an active citizen in a democracy any easier, but because it will gives us more tools with which to work. Democracies depend on participation and accountability, and broadly accessible useful information is a precursor to both.

This blog entry originally appeared on PhilanTopic. You can find the original post here.

Lucy Bernholz is a Senior Research Scholar at Stanford PACS and Director of the Digital Civil Society Lab. She is the author of Philanthropy and Digital Civil Society: Blueprint 2018, the ninth annual forecast.

Lucy Bernholz has been working in, consulting to, and writing about philanthropy and the social economy since 1990. The Huffington Post calls her a "philanthropy game changer" and Fast Company magazine named her blog Philanthropy2173 "Best in Class." She is a visiting scholar at Stanford University's Center on Philanthropy and Civil Society. Lucy earned a B.A. from Yale University and a M.A. and Ph.D. from Stanford University. On Twitter she's known as @p2173 and she posts most of her articles, speeches, and presentations online at www.lucybernholz.com where you can also find her blog, Twitter feed, and books.